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TMI Blog2008 (2) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the duty paid by original manufacturer, hence appellant are not entitled to take entire amount of duty paid by original manufacturer but was entitled to take credit of amount which M/s.Vairava incorporated in invoice - 2557 of 2005 and 13382 of 2005 - - - Dated:- 20-2-2008 - K. Raviraja Pandian and Chitra Venkataraman, JJ. Mr. K. Jayachandran, for the Appellant. Mr. K. Ramakri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, who had purchased the same from the manufacturer of machines. As per Rule 57AC(2) of the erstwhile Central Excise Rules, 1944, the credit of duty paid on capital goods could be availed only upto 50% of the duty paid on such capital goods in the financial year in which it was received and the balance credit may be taken in any subsequent financial year. M/s.Vairava Textiles Limited on purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l though confirmed the finding of the original authority as to the non-entitlement of 100% modvat credit on the duty paid by the manufacturer of the capital goods, however deleted the imposition of penalty on the ground that the appellant has availed the credit on a bona fide belief that it was entitled to such claim. The correctness of the said order of the Tribunal is put in issue in this app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by M/s.Vairava Textiles Limited, the credit availed was only 50 percent of the duty paid by the original manufacturer, the view of the authorities that the appellant was not entitled to take the entire amount of duty paid by the original manufacturer but was entitled to take credit of the amount which M/s.Vairava Textiles Limited incorporated in the invoice. Hence, we do not find any substance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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